By James Anyanzwa
NIC Bank Group posted a 28 per cent growth in pre-tax profit during the first three months of this year.
The Groupâs profit before tax rose to Sh1.03 billion during the first quarter ended March 31 from Sh803.33 million in a similar period last year.
NIC Group Chief Executive James Macharia noted that the bankâs performance was satisfactory considering the harsh operating environment characterised by high inflation, high interest rates and tight liquidity in the financial system.
"The external and domestic shocks, which have resulted in high inflation and tightening of the monetary policy are expected slow down the growth momentum of the Kenyan economy," he said.
According to the Groupâs unaudited financial statements released yesterday, operating income grew 30 per cent to Sh1.87 billion from Sh1.43 billion.
This was underpinned partly by growth in non-funded income and expansion in fees and commissions and foreign exchange trading revenues.
Total interest income grew 105 per cent to Sh2.69 billion from Sh1.31 billion, while non-funded income advanced 46 per cent to Sh694.82 million from Sh476.73 million.
Total operating expenses rose 33 per cent to Sh839.89 million from Sh627.3 million, driven by a planned branch expansion and increased staff complement, to support the growth in balance sheet.
Net loans and advances to customers grew 32 per cent to Sh56.55 billion from Sh42.8 billion while customer deposits increased 35 per cent to Sh69.29 billion from Sh51.33 billion in a similar period.
Rights issue
The Groupâs board has recommended the raising of additional capital of Sh2 billion through a rights issue subject to shareholders and regulatory approvals.
